CITYSTATE SAVINGS BANK, VS.

TERESITA TOBIAS AND SHELLIDIE

VALDEZ,
G.R. No. 227990, March 07, 2018

Obligation of the Principal:

Article 1911. Even when the agent has exceeded his authority, the principal is
solidarity liable with the agent if the former allowed the latter to act as though
he had full powers.

VIL-REY PLANNERS & BUILDERS v. LEXBER,

G.R. No. 189401, June 15, 2016

Guaranty:

Article 2066. Assures that "the guarantor who pays for a debtor must be
indemnified by the latter," such indemnity comprising of, among others, "the
total amount of the debt."

Article 2067. Establishes that "the guarantor who pays is subrogated by virtue
thereof to all the rights which the creditor had against the debtor."

CCC INSURANCE CORPORATION v. KAWASAKI STEEL CORPORATION,

G.R. No. 156162, June 22, 2015

Surety:

A surety is not released by a change in the contract, which does not have the
effect of making its obligation more onerous.

NYMPHA S. ODIAMAR VS. LINDA ODIAMAR VALENCIA,

G.R. No. 213582, June 28, 2018

Simple Loan:

Article 1956. Provides that "no interest shall be due unless it has been
expressly stipulated in writing." In this relation, case law states that the lack of
a written stipulation to pay interest on the loaned amount bars a creditor from
charging monetary interest and the collection of interest without any
stipulation therefor in writing is prohibited by law.

ERMA INDUSTRIES v. SECURITY BANK CORPORATION,

G.R. No. 191274, December 06, 2017

Surety:

If the Surety is more than one person, all of their obligations under this
Suretyship shall be joint and several with the Debtor and with each other. The
Bank may proceed under this Suretyship against any of the sureties for the
entire Guaranteed Obligations, without first proceeding against the Debtor or
any other surety or sureties of the Guaranteed Obligations, and without
exhausting the property of the Debtor, the Surety hereby expressly waiving all
benefits. (Article 2058 and Article 2065 and Articles 2077 to 2081)

SUN LIFE OF CANADA v. SANDRA TAN KIT,

G.R. No. 183272, October 15, 2014

Interest:

"Monetary interest refers to the compensation set by the parties for the use or
forbearance of money." No such interest shall be due unless it has been
expressly stipulated in writing. "On the other hand, compensatory interest
refers to the penalty or indemnity for damages imposed by law or by the
courts."

DEVELOPMENT BANK OF PHILIPPINES v. STA. INES MELALE FOREST

PRODUCTS CORPORATION,
G.R. No. 193068, February 01, 2017

Interest:

When the obligation breached consists in the payment of a sum of money, i.e.,
a loan or forbearance of money, the interest due should be that which may
have been stipulated in writing. Furthermore, the interest due shall itself earn
legal interest from the time it is judicially demanded. In the absence of
stipulation, the rate of interest shall be 12% per annum to be computed from
default.

CAPITAL INSURANCE v. DEL MONTE MOTOR WORKS,

GR No. 159979, December 09, 2015

Deposit:

The law specifically confers custody over the securities upon the commissioner,
with whom these investments are required to be deposited. An implied trust is
created by the law for the benefit of all claimants under subsisting insurance
contracts issued by the insurance company. As the officer vested with custody
of the security deposit, the insurance commissioner is in the best position to
determine if and when it may be released without prejudicing the rights of
other policy holders. Before allowing the withdrawal or the release of the
deposit, the commissioner must be satisfied that the conditions contemplated
by the law are met and all policy holders protected.
 COCA-COLA BOTTLERS PHILS. INC., V. SPOUSES SORIANO,
G.R. No. 211232, April 11, 2018

Mortgage:

In order to constitute a legal mortgage, it must be executed in a public

document, besides being recorded. And a mortgage affecting land, whether
registered under said Act or not registered at all, is not deemed to be sufficient
in law nor may it be effective to encumber or bind the land unless made
substantially in the form therein prescribed.

JOSE T. ONG BUN VS. BANK OF THE PHILIPPINE ISLANDS,

G.R. No. 212362, March 14, 2018

Deposit:

The surrender of the CCs is not required for the withdrawal of he certificates of
deposit themselves or for the payment of the Silver Certificates of Deposit,
hence, even if the holder has in his possession the said custodian certificates,
this does not ipso facto mean that he is an unpaid depositor of the bank. This
instrument is transferable only in the books of the Custodian by the holder, or
in the event of transfer, by the transferee or buyer thereof in person or by a
duly authorized attorney-in-fact upon surrender of this instrument together
with an acceptable deed of assignment. The Holder hereof or transferee can
withdraw at any time during office hours his/her Silver Certificate of Deposit
herein held in custody. This instrument shall not be valid unless duly signed
by the authorized signatories of the Bank, and shall cease to have force and
effect upon payment under the terms.

MARPHIL EXPORT CORP & IRENEO LIM v. ALLIED BANKING CORP.,

G.R. No. 187922, Sep 21, 2016

Deposit:

The relationship between banks and depositors has been held to be that of
creditor and debtor in a simple loan, legal compensation may take place when
the conditions in Article 1279 of the Civil Code are present: (1) that each one of
the obligors be bound principally, and that he be at the same time a principal
creditor of the other; (2) that both debts consist in a sum of money, or if the
things due are consumable, they be of the same kind, and also of the same
quality if the latter has been stated; (3) that the two debts be due; (4) that they
be liquidated and demandable; and (5) that over neither of them there be any
retention or controversy, commenced by third persons and communicated in
due time to the debtor.
 HEIRS OF JOSE PEÑAFLOR v. DELA CRUZ,
G.R. No. 197797, August 09, 2017

Real Estate Mortgage:

The purpose of a petition for the issuance of a writ of possession under Act No.
3135, as amended by Act No. 4118, is to expeditiously accord the mortgagee
who has already shown a prima facie right of ownership over the subject
property (based on his consolidated title over the same) his incidental right to
possess the foreclosed property. To reiterate, "possession being an essential
right of the owner with which he is able to exercise the other attendant rights
of ownership, after consolidation of title, the purchaser in a foreclosure sale
may demand possession as a matter of right." Thus, it is only upon a credible
showing by a third party claimant of his independent right over the foreclosed
property that the law's prima facie deference to the mortgagee's consolidated
title should not prevail. Verily, a mere claim of ownership would not suffice.

BANCO DE ORO UNIBANK v. VTL REALTY,

G.R. No. 193499, April 23, 2018.

Mortgage:

In all cases in which an extrajudicial sale is made under the special power
hereinbefore referred to, the debtor, his successors in interest or any judicial
creditor or judgment creditor of said debtor, or any person having a lien on the
property subsequent to the mortgage or deed of trust under which the property
is old, may redeem the same at any time within the term of one year from and
after the date of the sale.

ALONA G. ROLDAN v. SPS. BARRIOS,

G.R. No. 214803, April 23, 2018

Mortgage:

Examples of actions incapable of pecuniary estimation are those for specific

performance, support, or foreclosure of mortgage or annulment of judgment;
also actions questioning the validity of a mortgage, annulling a deed of sale or
conveyance and to recover the price paid and for rescission, which is a
counterpart of specific performance.

FATIMA O. DE GUZMAN-FUERTE VS. SPOUSES ESTOMO,

G.R. No. 223399, April 23, 2018

Mortgage:

The registered owner of real property is entitled to its possession. However, the
registered owner cannot simply wrest possession thereof from whoever is in
actual occupation of the property. To recover possession, he must resort to the
proper remedy, and once he chooses what action to file, he is required to
satisfy the conditions necessary for such action to prosper.
 KAREN NUÑEZ* VITO v. NORMA MOISES-PALMA,
G.R. No. 224466, Mar 27, 2019

Concurrence and Preference of credits:

Article 2242. With reference to specific immovable property and real rights of
the debtor, the following claims, mortgages and liens shall be preferred, and
shall constitute an encumbrance on the immovable or real right.

KEIHIN-EVERETT FORWARDING CO., INC. VS. TOKIO MARINE MALAYAN

INSURANCE CO.,
G.R. No. 212107, January 28, 2019

Common Carriers:

Article 1735[36]. The presumption of fault on the part of Sunfreight Forwarders

(as common carrier) arose. Since Sunfreight Forwarders failed to prove that it
observed extraordinary diligence in the performance of its obligation to Keihin-
Everett, it is liable to the latter for breach of contract. Consequently, Keihin-
Everett is entitled to be reimbursed by Sunfreight Forwarders due to the
latter's own breach occasioned by the loss and damage to the cargoes under its
care and custody.

INSULAR INVESTMENT v. CAPITAL ONE EQUITIES CORP.,

GR No. 183308, April 25, 2012

Obligations/Compensation:

Article.1278. Compensation shall take place when two persons, in their own
right, are creditors and debtors of each other.

Article 1279. In order that compensation may be proper, it is necessary:

(1)That each one of the obligors be bound principally, and that he be at the
same time a principal creditor of the other;

(2)That both debts consist in a sum of money, or if the things due are
consumable, they be of the same kind, and also of the same quality if the latter
has been stated;

(3)That the two debts be due;

(4)That they be liquidated and demandable;

(5)That over neither of them there be any retention or controversy, commenced

by third persons and communicated in due time to the debtor.

Article 1290. When all the requisites mentioned in Article 1279 are present,
compensation takes effect by operation of law, and extinguishes both debts to
the concurrent amount, even though the creditors and debtors are not aware of
the compensation.
 SULPICIO LINES v. NAPOLEON SESANTE,
G.R. No. 172682, July 27, 2016

Deposit:

Article 1998. The deposit of effects made by travellers in hotels or inns shall
also be regarded as necessary. The keepers of hotels or inns shall be
responsible for them as depositaries, provided that notice was given to them, or
to their employees, of the effects brought by the guests and that, on the part of
the latter, they take the precautions which said hotel-keepers or their
substitutes advised relative to the care and vigilance of their effects.

Article 2000. The responsibility referred to in the two preceding articles shall
include the loss of, or injury to the personal property of the guests caused by
the servants or employees of the keepers of hotels or inns as well as by
strangers; but not that which may proceed from any force majeure. The fact
that travellers are constrained to rely on the vigilance of the keeper of the hotel
or inn shall be considered in determining the degree of care required of him.

Article 2001. The act of a thief or robber, who has entered the hotel is not
deemed force majeure, unless it is done with the use of arms or through an
irresistible force.

Article 2002. The hotel-keeper is not liable for compensation if the loss is due
to the acts of the guest, his family, servants or visitors, or if the loss arises
from the character of the things brought into the hotel.

Article 2003. The hotel-keeper cannot free himself from responsibility by

posting notices to the effect that he is not liable for the articles brought by the
guest. Any stipulation to the contrary between the hotel-keeper and the guest
whereby the responsibility of the former as set forth in Articles 1998 to 2001 is
suppressed or diminished shall be void.

ASIAN TERMINALS, INC., PETITIONER, VS. ALLIED GUARANTEE

INSURANCE, CO., INC.,
G.R. No. 182208, October 14, 2015

Depositor/Warehouseman:

The "legal relationship between the consignee and the arrastre operator is akin
to that of a depositor and the warehouseman. The relationship between the
consignee and the common carrier is similar to that of the consignee and the
arrastre operator. Since it is the duty of the arrastre to take good care of the
goods that are in its custody and to deliver them in good condition to the
consignee, such responsibility also develops upon the carrier. Both the arrastre
and the carrier are, therefore, charged with and obligated to deliver the goods
in good condition to the consignee."
 CASES

In

CREDIT TRANSACTIONS

Submitted to:

Judge Charles Calapini

(Professor)

Submitted by:

Rachel Ann R. Sacayanan

(NWU- JD 2 Student)

February 04, 2020